August 18, 2014

Sugarcane Production in Sao Paulo may Decline 13%

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The Sugarcane Technology Center (CTC) is estimating that the sugarcane production in the Brazilian state of Sao Paulo could be 13% lower than last growing season. The center surveyed 150 sugarcane producers and concluded that the total production the state since the start of the harvest in April until August 1st is 7% lower than last year and the center is estimating that the production could end up being as much as 13% lower by the end of the harvest season.

The sugarcane harvest in southern Brazil during the second half of July totaled 35.98 million tons, which is the lowest amount for this period since the 2007/08 harvest when 25.27 million tons were harvested during the same period. During all of July 2014 there were 77.39 million tons harvested which is 11.5% less than July of 2013.

Problems for the sugarcane crop in southern Brazil started last December and January when record high temperatures were accompanied by a severe drought that reduced the overall growth of the sugarcane crop. As a result, many sugar/ethanol mills in southern Brazil estimate that the sugarcane harvest will end in November, which would be a month earlier than normal. As a result, many mills are slowing the harvest pace in order to keep their facilities operating until December.